You are required to prepare the company's Balance Sheet as on 31st December 2004 , and its Profit and loss Account for the year ended on that date form the information provided and also making necessary assumptions wherever required. The under mentioned balances appeared in the books of Dingo Flour Mills Ltd, as on 31st December 2004 :-
| | Rs. | | Rs. |
| Share Capital (Authorised and Issued), 60,000 Shares of Rs. 10 each | 6,00,000 | Motor Vehicles | 15,000 |
| Furniture | 5,000 | ||
| Stocks | 1,72,058 | ||
| General Dividends | 2,50,000 | Book Debts | 2,23,380 |
| Unclaimed Dividends | 6,526 | Investments | 2,88,950 |
| Trade Creditors | 36,858 | Depreciation Reserve | 71,000 |
| Buildings | 1,00,000 | Cash Balances | 72,240 |
| Purchases | 5,00,903 | Director's Fees | 1,800 |
| Sales | 9,83,947 | Interim Dividend | 15,000 |
| Manufacturing Expenses | 3,59,000 | Interest | 8,844 |
| Establishment | 26,814 | Profit & Loss Account 1" January 2004(Cr) | 16,848 |
| General Charges | 31,078 | ||
| Machinery | 2,00,000 | Staff Provident Fund | 37,500 |
Additional Information :-
a) The stock of wheat and flour on 31st December 2004 , were valued at Rs. 1,48,680.
b) Provide Rs.10,000 for Depreciation of block, and 1,500 for the company's contribution to the Staff Provident Fund.
c) Interest accrued on investment amounted to Rs. 2,750.
d) A claim of Rs. 2,500 for workmen's compensation is being disputed by the company.
e) Establishment includes Rs. 6,000 paid to the Manager who is entitled to remuneration @ 5% of profit ascertained according to the companies Act, subject to a minimum of Rs. 10,000 p.a.
Balance Sheet of Dingo Floor Mills Ltd. As on 31st Dec 2002
| Liabilities | Amount | Assets | Amount | |
| Share Capital General Reserve Unclaimed Dividend Trade Creditors Employees Provident Fund : 37,500 Add; Contribution during the Year : 1,500 Profit & Loss A/C | 600000 250000 6526 36858 39000 42616 | Buildings : 1,00,000 Machinery : 2,00,000 Motor Vehicles : 15,000 Furniture : 5,000 | 239000 148680 223380 288950 72240 2750 | |
| Total = 3,20,000 Less; Depreciation till date 81,000 Stocks Book Debts Investments Cash Balances Interest on Investments | ||||
| | ||||
| 975000 | 975000 |
Trading & Profit & Loss A/C of Dingo Floor Mills Ltd', for the year ended 31st Dec 2002
Dr.
Cr.
| Particulars | Amount | Particulars | Amount |
| To, Opening Stock : 1,72,058 To, Purchases : 5,00,903 | 672961 | By, Sales : 9,83,947 Bv, Closing Stock: 1,48,680 | 1132627 |
| To, Manufacturing Expenses To Gross Profit | 359000 100666 | | |
| | 1132627 | | 1132627 |
| To, Establishment 26814 Less; Managers Remun. 6000 | 20814 | By, Gross Prof it b/d By, Interest on Investments | 100666 2750 |
| To, General Charges To, Depreciation To, Directors Fee To, Contribution to Provident Fund To, Manager's Remuneration (111960-65192) x 5% = 2338 Add, (6000-2338) = 3662 | 31078 10000 1800 1500 6000 | By, Interest | 8544 |
| To, Net Profit | 40768 | | |
| | 111960 | | 111960 |
| To, Interim Dividend To, Net Profit transferred to B/Sheet | 15000 42616 | By, Balance b/d (Last Year) By, Net Profit (Current Year) | 16848 40768 |
| | 57616 | | 57616 |
Note : The Claim of Rs. 2,500 for workmen's compensation is in dispute and hence it has been taken as a contingent liability.
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